Directors Disqualification

Our regulatory lawyers are experienced at advising directors on all aspects of Directors Disqualification proceedings.

Directors-Disqu

Directors Disqualification Lawyers

A Directors Disqualification order is a way of preventing unscrupulous persons from being involved in the management of companies. The disqualification period obtained against company directors can vary from a minimum of two years to a maximum of 15 years. Directors Disqualification proceedings can be issued within two years from the date when the company was placed in liquidation, administrative receivership or administration.

While the criminal courts have powers to disqualify directors, in practice most disqualifications are made in the Civil Courts.

It’s a criminal offence to breach a Disqualification Order and if you act in breach you could be liable to prosecution. The offence carries a maximum of two years imprisonment and/or a fine, and a Director can also be made personally liable for the debt of the company concerned.

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A Disqualification Order will prohibit the person concerned from:
- being a Director of a company;
- being a liquidator of a company;
- being a receiver or manager of a company’s property;
- being in any way, whether directly or indirectly, concerned in the promotion, formation or management of a company.

When a company is placed into voluntary liquidation, administration or administrative receivership, the appointed Insolvency Practitioner, is required to submit a report on the conduct of the company directors. The vetting section of the ‘Enforcement Directorate of the Insolvency Service’ examines the report. If it is considers that it is in the public interest to prepare disqualification proceedings against the company directors, the case is referred to the ‘Disqualification Unit of the Enforcement Directorate of the Insolvency Service’. The Disqualification Unit then undertakes the investigation and preparation of disqualification proceedings.

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Just because a company has gone into liquidation, it does not always follow that the director is completely at fault and should be disqualified. The Insolvency Service are required to demonstrate that disqualified directors were negligent, incompetent and acted improperly. A commercial misjudgement is not sufficient to bring an action.

Our Directors Disqualification lawyers can assist with all aspects of Directors Disqualification proceedings including:

– Preparing written representations to the authorities that a Directors Disqualification order is unnecessary and disproportional:
– Where a period of disqualification is inevitable, we can negotiate the length of the disqualification, to keep this to a minimum;
– We can represent those accused of breaching a Directors Disqualification order;
– We can challenge the making of a Directors Disqualification order;
– We can apply to the Court for permission for a disqualified director to be involved in the management of a specific company.

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